Community engagement and development

If there was ever doubt about the importance of socio-economic issues and the role they play in impacting the mining sector, then the year under review should dispel these reservations for good. What the series of unprotected strikes in 2012 demonstrated was the clear linkage between labour issues on the mines and socio-economic conditions 
in society.

What is irrefutable is the need for solutions that address both aspects:

  • Firstly, solutions to labour issues on the mines. These issues themselves need to be viewed in the broadest sense and not only with reference to take-home pay and other benefits.
  • Secondly, solutions capable of tackling the external socio-economic environment in the labour-sending areas and host communities. The concept of a social compact forged by industry stakeholders is of key importance here, and has been described elsewhere in this report. (See page 8 for this content.)

Amplats’ Community Engagement Department (CED), with support from other departments, including the Sustainable Development Department and the Supply Chain and Procurement Department, is tasked with supporting programmes that are designed to create better living and economic conditions for those people living near to the Company’s operations and also in the labour-sending areas of Lesotho, Mozambique and the Eastern Cape province in South Africa.

CED also plays an integral role in identifying communities’ needs, primarily through in-depth dialogue and engagement with what are often numerous parties: the intended beneficiaries; local, district and provincial government; and other stakeholders. The department also assists operational management to understand local conditions, whether social or political, and to engage with people and situations when necessary.

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STRATEGY, SYSTEMS AND PROCESSES

The need to understand the operational profiles of stakeholders − what motivates them, what their requirements are − and then to respond to this information appropriately is framed firstly by legal requirements and secondly by company values, strategies, policies and standards.

Legal requirements include South Africa’s Mining Charter and associated Social and Labour plans, Zimbabwe’s indigenisation legislation, and local development imperatives as 
codified in municipal integrated development plans and spatial development frameworks.

Important Company guidance is contained in the Anglo American Social Way and the Anglo American Socio-Economic Assessment Toolbox (SEAT) Version 3. The Social Way is the overarching governing framework for the management of stakeholder relationships and social impacts.

Assurance of the Company’s compliance with the standards contained in the Social Way are obtained through the following means:

  • The Good Citizenship Business Principles letters of assurance process
  • Regular self-assessments
  • Peer reviews
  • Community consultations
  • Operational grievance mechanisms
  • Implementation of the SEAT process
  • Third-party audits

The Social Way requires that operations assess their performance annually to establish the degree to which the “24 elements” (see box on page 76) have been addressed.

Amplats’ compliance with these requirements is generally good. Element 14 is not currently applicable in the Amplats context as the Company does not operate in jurisdictions where indigenous people exist, and elements 15 to 20 are specific to only a few of our operations. The self-assessments culminate in improvement plans that guide each operation in closing any gaps identified during the assessment.

We have made progress in addressing those two requirements in which we previously lagged behind expectations:

  • table61 Element 5. Ensure that all contractor and business partner arrangements and Contractor Management Systems include the operation’s and Anglo American’s social performance requirements. A plan to integrate social performance requirements into contractor management has been developed but is yet to be implemented at operational level. To address requirement in part, Anglo American plc convened a summit for high-risk contractors – transportation companies, explosives suppliers and large employers – whose activities require knowledge of the Group’s social management requirements. The purpose of the summit was to engage with these entities about the Group’s requirements in relation to the management of environmental and social issues.
  • Element 10. Identify, prepare for and have the capability to respond appropriately to emergency and crisis situations that have the potential to impact associated communities or our corporate reputation. Work in this regard is under way. A draft revised emergency and crisis procedure has been developed and is currently under review.

The graph on page 77 clearly indicates that we are improving in our overall application of the Social Way. Two aspects of the figure deserve mention:

  • Firstly, that we had slightly more significant non-compliances this year than in 2011.
  • Secondly, that there is a distinctive move from compliance to good and best practice.

Additionally, during 2012 we focused on integrating the Social Way requirements into our projects as well as closing the gaps on any outstanding requirements.

A key tool used by operations to fulfil the obligations of the Social Way standards is the Socio-Economic Assessment Toolbox (SEAT) Version 3. The SEAT’s objectives are to:

  • provide guidance and support for achieving full compliance with the Social Way
  • identify key social and economic impacts and issues that need to be managed and, thereby, improve risk management
  • assess existing social performance initiatives, such as community development projects, and identify where improvements are required
  • facilitate the capture and sharing of best practice across the Company
  • improve each operation’s understanding of the full range of local stakeholders, and of their views and interests; provide guidance in developing and updating annual Community Engagement Plans (CEPs), and increase trust and goodwill among host communities
  • support sustainable socio-economic development in host communities and ensure that we respect human rights

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SEAT is an assessment process designed to provide insight into our relationships with stakeholders and our impacts (both positive and negative) on them. It is also a set of mechanisms aimed at improving our socio-economic performance and enhancing our relationships.

table63 Previously, the completion of the SEAT process – every three years – did not coincide with other operational socio-economic planning processes, especially those required to revise the Social and Labour Plans (SLPs). 
The forthcoming round of events in the completion of the SEAT process will be different: Anglo American Platinum operations will use the outcomes of (the important information derived from) the SEAT process as the basis for revising the SLP at each operation during 2014. This is a very new important step in aligning processes and systems at the operations, which will now compile integrated social management plans annually. These plans will combine all social management systems and processes under one plan, including the CEP, the emergency response plan, the components of the social and labour plan, contractor management plan and the plans for delivering support to local people.

Socio-economic benefits

This section summarises and discusses the overall economic contribution of the Company; the socio-economic benefits that result from the work primarily of the CED; and the work of the Supply Chain and Procurement Department. It also features a short section on beneficiation and the platinum market in general.

THE 24 ELEMENTS OF THE SOCIAL WAY

  1. Proactively identify positive and negative social impacts, assess significance and risks.
  2. Proactively seek to deliver a lasting net socio-economic benefit to host communities over the project lifecycle and beyond through the operation of our core business in addition to social investment.
  3. Efficiently utilise resources allocated for managing social performance, including through cross-company “One Anglo” delivery models where relevant.
  4. Ensure that legal, regulatory, Anglo American and other requirements applicable to social issues are identified and documented, and that all documentation is maintained, accessible, communicated and understood, and that the requirements are complied with.
  5. Ensure that all contractor and business partner arrangements and Contractor Management Systems include the operation’s and Anglo American’s social performance requirements.
  6. Ensure that our conduct recognises the gender dimension of social challenges in the communities associated with our operations, and that, through our community programmes, assist in addressing previous disadvantage.
  7. Ensure that relevant objectives and targets for social issues are integrated into the overall business planning process and are deployed throughout the organisation for the purposes of continuous improvement.
  8. Ensure that employees and contractors are competent to perform their activities in a professional and socially responsible manner, including through the provision of appropriate training and mentoring.
  9. Proactively communicate and consult with employees, contractors, suppliers, associated communities, relevant Government bodies and other stakeholders, to ensure that they are aware of social matters and that their perceptions and opinions are considered.
  10. Identify, prepare for and have the capability to respond appropriately to emergency and crisis situations that have the potential to impact associated communities or our corporate reputation.
  11. Investigate, categorise, analyse and internally report on all social incidents and complaints, and ensure that appropriate corrective and preventive actions are taken to close these out, and that the lessons learnt are shared.
  12. Ensure that social performance, systems and practices are monitored, audited and reviewed to identify trends, measure progress, assess compliance, and ensure that good practice is shared.
  13. All Anglo American-managed exploration activities, development projects and operations shall develop, document, implement, maintain and review a Social Management Plan.
  14. Operations shall develop a formal plan for interactions with any communities of Indigenous People impacted or potentially impacted by their activities.
  15. Protect and, where possible, enhance the value of cultural heritage. The management of cultural heritage must meet or exceed the requirements set out in IFC PS 8 on Cultural Heritage.
  16. All resettlement exercises must be properly resourced and meet or exceed the requirements set out in IFC Performance Standard Number 5 on Land Acquisition and Involuntary Resettlement.
  17. A Resettlement Action Plan and a participative economic development strategy must be developed for all resettlements and must be signed off by the Group Head of Government and Social Affairs.
  18. All resettlements must be subject to ongoing monitoring and, three years after completion, an independent evaluation.
  19. Plans and negotiations with respect to formalised benefit-sharing agreements shall be discussed with Group Government and Social Affairs and, where proportionate, approved by the Executive Committee.
  20. Migrant colleagues should at all times be treated fairly and should not be subject to any form of discrimination. Adequate social provision and time to return to families should be allowed for.
  21. Each Anglo operation shall ensure that executives and managers develop a formal process to recognise, reinforce and reward desired social outcomes.
  22. Systems, procedures and work practices are formally reviewed following a legal non-conformance or a Moderate or Serious social incident to ensure that they continue to be applicable, relevant and effective. Lessons learned must be shared across Anglo.
  23. Ensure that the possible impact of proposed corrective and preventive actions is reviewed in order to mitigate or prevent negative impacts and to enhance positive impacts. These actions must be documented, communicated, tracked and closed out.
  24. Each Anglo American managed operation shall perform a Management Review of its Social Management System and plan at least annually.

Economic contribution

Our economic contribution has been discussed in detail in the value add section of this report on pages 66 to 73.

Local socio-economic development

Our operations are situated in the rural parts of South Africa and in Zimbabwe. These areas are characterised by low levels of formal economic activity, the inadequate provision of infrastructure and services, and the often poor quality of services (when these are available). For many people living in these areas, the mines represent beacons of possibility: as employers and procurers, and as supporters of local development.

CED’s role at the operational level is to understand local dynamics, link up with other development actors and tailor the operation’s support to the local context. Through its various formal and informal platforms the CED acts as listener and communicator, and is central to an understanding of the local scenario by the Group and its operations. The information obtained by the department is used to guide the mine’s support for local development.

Funding for development is committed to in the social and labour plans (SLPs) and is augmented through additional funding for projects not specified in the SLPs but identified as important in addressing real needs in the communities.

Emerging from the 2012 unprotected strikes are some fundamental questions that we need to ask ourselves in relation to the socio-economic development work that we do. At a general level, the entire mining sector needs to spend time and effort reflecting on what it has to do differently in order to ensure that the benefits derived from mining are optimised. This issue is discussed in more detail on pages 6 to 8.

At the operational level, management needs to test whether the socio-economic development programmes it commits to are yielding the intended results. We need to reassess our strategies, even when we believe that plans originally devised at the operational level were co-developed with all the relevant local stakeholders.

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Kgololosego Leteketwa, an educator at Kloof View Primary School in Rustenburg

At present, local stakeholders benefit from the Company’s activities in a number of ways:

  • Employment. This generates income for employees and their families, and creates economic multipliers in the local economies where money is spent.
  • Employment benefits. In poor communities, employment benefits such as healthcare and housing support are often as sought after as the jobs themselves.
  • Royalties and rent. The Company pays royalties and rent to the owners of surface and mineral rights. Where these rights are vested in local communities, the benefits flow is direct.
  • Taxes. Amplats and its employees contribute to national and local tax revenue in a variety of ways (company tax, employee income tax, local rates and taxes, and value-added tax). Here the benefit to communities is indirect.
  • Black economic empowerment (BEE).
  • Asset ownership. Amplats has undertaken a number of empowerment deals based on equity ownership. These equity ownership models involve one or several assets, including mines and processing facilities. Benefits are delivered through share value and dividends. See the detailed coverage on Project Alchemy on page 81.
  • Business-process ownership. Here businesses in communities are given the right to own or co-own mine-related business processes, such as transport. Refer to the Supply Chain and Procurement section on page 90.
  • Preferential procurement. 
    Amplats practises preferential procurement in local communities, in compliance with broad-based black economic empowerment requirements. Refer to the Supply Chain and Procurement section on page 90.
  • Local economic development (LED) projects. These are undertaken under the umbrella of the mines’ social and labour plans, which require LED in host and labour-sending communities. Local infrastructural development is a strong focus of these programmes, and its impacts are often direct.
  • Community social investment (CSI). Amplats has CSI programmes focusing on community upliftment at all its sites.

The Company is currently working towards an integrated benefits model built around a single planning process that would manage all social initiatives in a manner designed to maximise their benefits. This model is being designed to:

  • identify bottlenecks early
  • allocate both monetary and human resources effectively
  • allow performance to be tracked through an effective feedback mechanism

Amplats currently follows an inclusive zone (radius) approach of 50 km from its operations for the identification of beneficiaries of community development. This is, however, under review to ensure our activities are more focused and beneficial.

The Company spent R276 million on community projects during the year, a significant increase on the figure for 2011, as a result of focused efforts to address local challenges and needs. The table below outlines spend according to investment areas between 2010 and 2012. The case study on page 81 shows where the Company spends 
this money.

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Community members working at the glass beading project at Rustenburg

 

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Kgabutle Senior School near Union Mine

 

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Work on the Northam waste water treatment works


OUR CONTRIBUTION

Amplats helps build a stronger society by investing in the communities around its operations to make them healthier, safer and more prosperous.

Creating healthier communities

Managing HIV/AIDS in its workforce is a critical health issue. Amplats is part of Anglo American’s leading HIV/AIDS testing and treatment programme, with 93% of employees tested in 2011. More than 5,700 employees are enrolled in wellness programmes and more than 3,500 are receiving free antiretroviral treatment.

Mobile clinics, funded by the Company and delivered in partnership with the Department of Health (DoH), have delivered primary healthcare to more than 32,000 people. Lifeline, also funded by the Company and the DoH, has run mobile clinics, testing 282,500 community members for HIV since 2010.

The Company’s investment in healthcare facilities in 2011 included the completion of the Jalamba Clinic for remote communities in the Eastern Cape, in partnership with the Anglo American Chairman’s Fund; and also the R14.5 million upgrade of primary healthcare facilities in communities living close to its mines in Limpopo.

Building stronger communities

During 2012, we invested R276 million in community development initiatives to support 
job creation, health, education, infrastructure (such as roads and schools), and ommunity health and welfare. The increase is attributed to the construction of the R37 regional road as well as funds disbursed due to Alchemy.

Nine small business support hubs, run as part of Anglo American’s internationally recognised Zimele initiative, have advanced R131 million in loans to create and maintain more than 5,300 jobs in 399 businesses since 2008.

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Supporting education

More than 350 employees, community members and contractors took part in adult basic education and training (ABET) programmes in 2011.

The Company launched a R40 million bursary fund in 2011 for people living around Twickenham Mine.

More than 2,000 learners benefited from extra maths and science lessons organised by Amplats during the winter and spring school holidays in the provinces of North West and Limpopo.

In the course of 2011, the Company officially handed over the R15 million Tlhabane West Primary School to the Department of Basic Education. The school has 25 classrooms and will benefit 643 learners. It also began the planning and construction of two more schools in labour-sending areas in the provinces of Eastern Cape and North West.

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Makgopa village football near Twickenham Mine

 

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Isaac Masha inspects the Kalkfontein olive farm project near Der Brochen

 

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Mashishi farm project near Twickenham Mine

Sharing the benefits of mining

In 2012, Amplats generated value for the following stakeholders: 

  • R1,250 million for providers of capital;
  • R11,511 million to employees for wages and related costs;
  • R3,574 million in taxes and royalties to governments;
  • R27,636 million to suppliers for goods and services.

The Company’s ground-breaking community share ownership scheme, Project Alchemy, is a R3.5 billion transaction that will ensure the long-term development of communities situated close to the Mogalakwena, Rustenburg, Twickenham and Amandelbult mines, and in key labour-sending areas.

As part of Project Alchemy, four community development trusts and a non-profit company will receive a minimum of R20 million in cash and dividends from shares per annum; 
R30 million from rechannelled corporate social investment spend; and health and safety-related cash flow benefits if on- and off-mine safety and health targets are met. Refer to page 81 for more information.

Between 2007 and 2012, Amplats spent 41% (or R55.5 billion) of its R140 billion procurement spend with businesses run by historically disadvantaged South Africans.

In 2012, Amplats spent R2.7 billion − or 13.5% of total supply chain spend − with local businesses run by historically disadvantaged South Africans living around its operations.

Working for a sustainable future

To address water shortages for its operations and the communities around its mines, the Company is part of a partnership with Government to provide 1.9 million people with clean water through the Lebolelo Water Scheme, and the Flag-Boshielo and De Hoop dams in Limpopo province.

The Company invested R597 million in 2011 in professional development programmes for employees, training more than 443 bursars and delivering 430 engineering and mining learnerships.

Amplats is facilitating home ownership among its employees with more than 510 houses built in 2011 in the Seraleng and Northam housing projects.

A key bottleneck identified by the Company is the lack of capacity at the local municipal level. In order to address this, the Company supports the training and development of officials in order to speed up the rate of delivery. Without the capacity to develop a long-term development strategy and the coherent planning needed to implement it, delivery will always be accompanied by missed deadlines and other issues.

In certain circumstances, nothing an operation does will appease all constituencies. An example is the firebombing of the Serafa camp at Twickenham in 2012. This occurred 
as a result of contested payments to community trusts, local power struggles and surface rights issues.

Regular communication by the operations tempers the frustrations experienced by local stakeholders. Operations use various means to engage their stakeholders, including newsletters, the radio and face-to-face meetings.

PROGRESS MADE ON PROJECT ALCHEMY

Project Alchemy (Alchemy) was designed to provide direct participation by local stakeholders in Amplats, and 2012 saw substantial progress being made on the project’s implementation.

A R3.5 billion transaction, Alchemy is designed to promote sustainable socio-economic development. Its benefit areas are communities that are not benefiting from the Company’s existing broad-based black economic empowerment initiatives. They include a number of communities hosting and living close to the Mogalakwena, Rustenburg, Twickenham and Amandelbult mines, and also communities in the key labour-
sending areas.

Alchemy is unique in its overt facilitation of long-term development through equity ownership. Funding and institutional arrangements have been carefully designed to realise this objective.

Guiding principles

Alchemy’s guiding aims and principles are:

  • to design a transaction structure that will result in real benefits for the target communities from the outset
  • to provide funding for the transaction through a “cashless” funding structure for ten years
  • to ensure transparency and community empowerment by engaging with and educating the beneficiaries about the scheme and its dividends
  • to ensure that the communities benefit from the structure − through both dividends and capital appreciation − for a period of at least 30 years
  • to promote the viability of communities beyond the life of the mines

SOCIO-ECONOMIC DEVELOPMENT IN THE LABOUR-SENDING AREAS

Amplats’ employees come from across southern Africa. The key labour-sending areas are the Eastern Cape province of South Africa, followed by Lesotho and Mozambique. The Company’s Human Resources Department knows exactly where each employee comes from and is thus able to assist the CED in terms of where to target support for development in these areas.

The CED focuses on four main labour-sending areas, namely:

  • Taung in the North West province
  • Bizana and Mqanduli in the Eastern Cape province
  • Mohaleshoek in Lesotho
  • Xai-Xai in Mozambique.

The CED works in partnership with the Anglo American Chairman’s Fund, which is responsible for ensuring that the projects are implemented on the ground. Other implementation partners include TEBA Development.

Support focuses on agriculture, education and housing. In Lesotho, approximately R9 million will fund support for small-scale crop and livestock farmers. The money will fund technical support and market access for the farmers. The Company is also involved with keyhole gardens in a partnership with the Lesotho Department of Agriculture. These are small gardens that provide much needed vegetables for their owners and that will, at some point, produce a surplus for sale.

In Mqanduli in the Eastern Cape province, the Company supports a wool-farming initiative in partnership with the Council for Scientific and Industrial Research (CSIR). The farm is run by ex miners and the widows of miners.

Lefa La Rona and the development trusts

An umbrella trust, the Lefa La Rona (meaning “our inheritance”) Trust, has been created to hold Company shares for the beneficiary communities. Four independent development trusts and a not-for-profit company (NPC) are in the process of being established to serve the intended beneficiaries. Steady progress has been made in setting up the trusts.

The Amandelbult trust is close to 70% established, while the trusts at Rustenburg, Mogalakwena and Twickenham are likely to be established in the course of 2013. All four trusts are likely to be registered by the end of 2013. Regulatory approval from the South African Revenue Service has been obtained for the non-profit status of Lefa La Rona.

As they move into the operational phase of their evolution, the NPC and the four development trusts will each have five trustees: one from Amplats, three selected by the beneficiaries and an independent trustee. To better guarantee the success of the trusts, Amplats has an established project team whose purpose is to ensure that the trustees understand their mandate and are able to inform and guide beneficiaries. Working groups have been planned or set up to seek agreement on the processes for the selection of community trustees (to take place in 2014), the signing of the trust document and other foundational requirements. Typically, these groups comprise representatives from the local communities, local municipalities and the Company. The working 
groups are also responsible for communicating with beneficiaries; 
the handover to the trustees; and making certain that the trust documents are locally appropriate and acceptable, and completed and signed.

The trust contracts contain certain fixed elements such as governance requirements, financial management and reporting criteria, and a framework for long-term development planning. There are portions of the agreement that are open to change and that allow beneficiaries, through the working groups, to tailor the contract to suit their circumstances.

Each development trust, and also the NPC, will be entitled to appoint a trustee to, and receive a pro-rata participation interest in, the umbrella Lefa La Rona Trust.

Once functional, the trusts will be responsible for (1) development planning; (2) the identification of projects and programmes in which to invest; and (3) the management and administration of the trusts themselves. The development planning undertaken by the trusts will be aligned with other relevant planning, including that of local government.

Funding

No equity contribution will be required from the beneficiaries. A notional loan was used by the Lefa La Rona Trust to purchase shares in Amplats. Notional interest is fixed at a rate of 9.5%, nominal annual compounded in arrears annually for a period of 10 years. The funding structure provides the beneficiary trusts with exposure to capital appreciation, a portion of dividends in cash and voting rights. Amplats will repurchase a portion of the shares held by the Lefa La Rona Trust to settle the outstanding notional loan at the end of the 10 years.

Restrictions

The shares allocated to the Lefa La Rona Trust may not be sold or encumbered for the first 10 years. Thereafter, 40% of the beneficiaries’ entitlement at the end of the term may be sold or encumbered, with the remaining 60% saleable only after 20 years. This equates to the current 30-year life-of-mine period in the Company’s mining rights.

Benefits

The benefits of the structure are 
as follows:

  • The trusts and the NPC receive cash benefits from the start of the transaction.
  • The trusts and the NPC are able to influence the amount of cash they receive each year. In addition to the dividend income, the trusts and the NPC will be able to motivate for projects to be funded through a R30-million corporate social investment fund. The development trusts will receive incentives for achievements against community-relevant health and safety indicators.
  • The minimum guaranteed dividend of R20 million means that the trusts and the NPC will always receive a minimum guaranteed dividend even if Amplats does not make a profit or declare a dividend to other shareholders.
  • The early settlement of the notional loan as the result of the outperformance of the Amplats share price will ensure significant equity-value transfers to the community trust and NPC, thereby reducing the risk of the structure. However, like all other shareholders in Amplats, the trusts and the NPC will be exposed to equity risk, which might mean that the share price underperforms even though the Company may be making profits.

Governance

During the first two years of the project (the mobilisation phase), and in order to ensure that benefits begin to flow immediately to the beneficiaries, Amplats will establish the development trusts and appoint five initial trustees per development trust, three of whom will be independent. The community trustee selection process will be refined and implemented during the mobilisation phase.

The Alchemy institutions are intended to progress through a consolidation and then an operational phase, reaching full autonomy when community trustees are in the majority. At that stage Amplats will no longer be entitled to appoint trustees, and the development trusts will be able to sell and/or encumber up to 100% of the remaining Amplats equity holdings.

During 2012, R20 million was paid into the Lefa La Rona Trust. An appropriate proportion of this money has been allocated for development projects in the LSAs.

Mogalakwena resettlement

An agreement was signed between the Motlhotlo Community and the mine in June 2012, which unlocked the relocation of the remaining households. Relocation commenced in December 2012 and current planning includes completion of the relocation process by end 2013.

Twickenham resettlement

The last seven households at Mokobakoba in Twickenham have consented to move off the land. Until 2010, these households had refused to move with the other households who had gone to Magobading. The engagement and resuscitation of this resettlement was initiated by the residents themselves, after Twickenham Mine accepted that they did not want to leave the area. The areas in which they will settle have been identified and the Company is finalising the necessary administrative processes.

FIRMLY ROOTING SUSTAINABLE DEVELOPMENT

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Many of our mines are located in rural areas and among rural communities. Over time it has become clear that two things threaten the long-term economic sustainability and well-being of some of the communities living close to our operations:

  • A high dependence on the resources, activities and financial opportunities that will inevitably come to an end when our mines eventually reach the end of their lives. These include jobs at the mines and in other businesses supporting the mines, schools built and maintained by the mines, and so on.
  • An often dire lack of the essential skills community members require to be able to make a living and become self-sufficient.

In order to address these challenges more meaningfully in Limpopo province, Amplats has opened an environmental training centre near Mogalakwena Mine, some  
30 kilometres from Mokopane. The centre was launched in 2012, when various courses on offer were successfully implemented.

Fully sponsored by the mine, the new training centre is located on Mogalakwena’s biodiversity offset area, on the eastern boundary of the Waterberg Biosphere Reserve. Converted from a disused stable, it provides accommodation for some two dozen learners and five trainers in a comfortable and relaxed atmosphere. It has been fitted with training equipment, and offers a diversity of work spaces to cater for different training styles and needs. The centre also has a separate industrial-style kitchen that makes it possible for a group of women from the local community, who have been trained to cater for larger groups, to prepare meals for up to  
30 participants.

By providing courses in permaculture, food preparation and other subjects, the Mogalakwena centre aims to help local communities acquire greater control over their lives. In the more immediate term, they are being empowered to meet many of their food needs by cultivating their own crops based on the sound agricultural principles taught at the environmental centre; in the slightly longer term, they will be acquiring various other skills capable of boosting microeconomic development in the area.

The first course in 2012 covered the art of food preservation and was presented by an accredited company. Participants were taught all aspects of the subject, including the making of chutneys, jams, pickles and salads. The produce used to make the preserves had been grown on Mogalakwena’s own Groenfontein vegetable farm, which has acquired a reputation as one of the mine’s sustainable-development success stories. Seen from this angle, the new training in permaculture and food preservation amounts to the logical extension of a community-development programme that has already proved itself and is already familiar to the community.

The permaculture course seeks to provide participants with the knowledge and skills they need to undertake their own farming, ideally at a scale that enables them to grow much of their own food and also produce a surplus for sale.

The course is aimed at the following typical sizes of land cultivation:

  • Individual gardens of up to 10 m2 (able to produce up to 250 kg of vegetables a year).
  • Family gardens of up to 60 m2 (capable of producing up to 1.5 tonnes of vegetables a year).
  • Community gardens of 1 hectare (which can yield up to 150 tonnes of vegetables a year).

In 2012, a total of 100 trainees from the nearby Sterkwater and Pafola communities attended training in permaculture, and we are looking forward to the roll-out of the same courses in other communities. The programme has been designed to cater for 300 permaculture students per year. In 2013, the mine aims to fill the course with participants sponsored by some of its larger service providers.

An additional three courses are being introduced in the centre’s second year:

  1. Sustainable development through mining. This course is designed to expose the community to the meaning of sustainable development in mining; and to explain how the mine has been contributing, and will continue to contribute, to sustainable development in the region.
  2. Linkages to the Eco-Schools South Africa programme. The objective here is that the training centre should become the hub for an Eco-Schools node consisting of 13 registered Eco-Schools. Four such schools already exist in the area. Courses offered at the training centre will complement the existing Eco-Schools programme.
  3. A carpentry/woodworking course for adults. This will teach the skills required to make furniture from the wooden packaging crates supplied by the mine as part of its waste-reduction strategy.

Mogalakwena thus plans to build on its early success in 2012, and to make a lasting contribution to the communities living close to it.

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UNKI VILLAGE 17, HOUSING PROJECT

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New house at Unki Village housing project

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Handing over ceremony at Unki Village

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Unki Village scene

During 1999 to 2000, 22 families (former Shungudzevhu Cooperative members) were relocated to Village 17 as part of the development of the Unki Project and its associated mine infrastructure.

Prior to this resettlement, wide consultation occurred with the affected families, the local authority (Tongogara Rural District Council), the Office of the District Administrator (who chairs the District Land Committee) and other relevant Government departments at district level. Scott Wilson Consulting Engineers were engaged by Unki Mines  
to conduct a social impact assessment for the Unki Project and to come up  
with a resettlement action and compensation plan.

The plan was approved by the board of Unki Mines on 25 March 2002.

Over and above land-for-land compensations, the relocated families were paid money based on valuations of their respective assets. These included dwelling structures, granaries, domestic-animal pens, fruit trees and a share of co-operative assets. The valuations were made in line with the then applicable market values. All the affected families were also paid an equal lump sum for general disturbance resulting from the displacement, and received agricultural seed and fertilizer.

The compensation in cash (paid in 2002) happened at a time when the national economy was already suffering from runaway inflation that quickly eroded the buying power of the Zimbabwean dollar. Evidence of non-development in Village 17 years after the relocation was testimony that Zimbabwe’s hyperinflation had not spared the relocated families and had reduced their cash compensation to almost “nothing”, thus leaving them worse off than before the relocation.

This situation accounted for the families’ appeal to Unki, in 2011, to build them houses similar to the ones the mine had built for other families who had been resettled in Rietfontein during 2002 to 2003 and in Makwikwi in 2006.

The result of this appeal was the Village 17 housing project, which culminated in a day of celebration on 14 November 2012, when the general manager of Unki Mines, Mr Walter Nemasasi, handed the villagers ownership and occupation certificates for the brand-new modern homes that were replacing the grass-thatch huts they had been living in.

Speaking on behalf of all the beneficiaries, Mr Madala Sekani,  
the head of Village 17, thanked Unki Mines for responding to their plea: “Many of us had never dreamt of owning such beautiful houses. We are very happy with the houses and grateful for the continued support from Unki Mines, which also includes the upgrading of our village access road and the implementation of the Shungudzevhu irrigation project − currently in progress − that will improve our food security  
and livelihoods.”

The road upgrade means that the Village 17 community now also enjoys easier access to the better-resourced Chironde clinic, and to the Chironde Primary and Secondary schools.  
Both the schools were refurbished and equipped by Unki Mines, under  
its previous community social investment initiatives.